The New Hampshire Insurance Department (NHID) has issued a bulletin clarifying the appropriate use of aerial imagery in property insurance underwriting, particularly regarding decisions to refuse to write or renew policies based on roof condition. This guidance ensures that insurers apply fair and accurate practices when utilizing aerial imagery as an underwriting tool.
Recent complaints received by the NHID indicate that some property insurers have relied on aerial imagery to justify nonrenewals based on mistakenly identified roof conditions. The updated bulletin reaffirms that while insurers may refuse to write or renew policies due to clear evidence of property degradation or damage, they may not do so solely based on cosmetic issues such as roof discoloration.
The NHID acknowledges that aerial imagery is a valuable tool for assessing property conditions but emphasizes that it is not infallible. To ensure fairness and prevent unsupported underwriting actions, the bulletin directs insurers to implement proper checks and balances when relying on aerial imagery. If aerial imagery does not conclusively demonstrate roof degradation or damage sufficient to justify refusal to write or renew a policy, insurers must conduct a follow-up physical inspection to verify their findings. Additionally, if an applicant or insured disputes the insurer’s determination—even when the insurer believes the aerial imagery to be conclusive—a physical inspection is required.
“Issuing this guidance reflects a positive step toward safeguarding the interests of New Hampshire’s citizens,” said Insurance Commissioner DJ Bettencourt. “In a world where technology continually advances, we must ensure that property insurers balance innovation with accuracy. Relying exclusively on aerial images without the credibility of accurate information can lead to decisions that do not serve the public interest. By insisting on physical inspections when appropriate, we uphold the integrity of insurance practices while protecting Granite Staters from unfounded policy decisions. This approach not only maintains fairness and responsibility but also contributes to encourage the kind of innovation that generates cost savings, benefitting both industry and consumers alike.”
“These updates not only protect consumers but also provide clear expectations for insurers utilizing advanced tools like aerial imagery,” said Deputy Insurance Commissioner Keith Nyhan. “The NHID remains committed to promoting transparency and fairness in New Hampshire’s insurance market.”
A copy of the Bulletin is provided below:
